Can a faster repayment of a home loan be a bad decision?

A mortgage or mortgage is usually one of the biggest credit obligations a person receives in his life and because of this size and long repayment schedule for these loans is usually also the most overpaid. Often the total overpayment to be made on this loan is up to 50% of the total fair value of the property, which means that if your apartment costs 20 thousand, you will pay the bank at least 30 thousand at the time of the loan repayment, which is 10 thousand more. than the fair value of the property.

Repayment of a home loan

Repayment of a home loan

So, precisely because of these costs, many people usually think about how it would be if they tried to repay the loan faster, whether it would affect the total amount of credit and whether such a financial decision would be economical, or would it be better to invest or invest somewhere else? So, from the very beginning, if you can’t repay the loan in one payment, then you will not save as much as you imagined as a percentage of the amount you usually pay for the repayment of the loan and only when the interest is repaid. you agreed with the bank, then the repayment of the principal amount starts and so the savings will not be so great. Of course, if you repay the loan in 10 years instead of 20 years, the total benefit could be close to 5,000 Euros if the total loan financing was 20,000. But if you repay the loan in 18 years instead of 20 then this benefit will be very minimal and most likely you will not even feel that you would have earned extra money and would not have given it to the bank.

That is why financial planners often recommend that people use this extra money for short-term loan repayments or savings. If the mortgage interest rate is, for example, 4%, but the rate of the fast loan is 100% then there is no option here and you definitely have to repay this short term loan much faster, because even though its amount is much smaller, you pay a lot more than the same time mortgage lender with this low interest rate. If you have no other credit, you should definitely think about making your own savings, because we all have different unexpected situations in life, and if there are no such savings, then new loans with much higher interest rates will have to be taken again. But if you have this reserve fund set up in sufficient size and then have more money left, then you can start paying off the mortgage faster, because in the long run you will save money even if you pay the highest amount each month that you lose money.

It is usually very difficult for people to understand that paying higher payments to the creditor now gives you much more money in the long run, as most of us see only short-term losses on their wallet and think that it is not worthwhile to repay the loan faster because you have less money now. But if we think a little deeper, then credit means that your money is actually in the minus and if you pay a higher monthly payment you will soon return to the positive value and you will save on high interest payments in the process.

 

 

 

Loan for everyone, money now, pay later

Oh my God, I think I’m going to have to make a loan at the bank! The end of the month arrives, opens the drawer, several bills to pay, credit card bills with extended weekend expenses, water bills, light and telephone, car financing ticket, children’s school fee, xi, this week has a fantasy party, now what? More of this story: kqylpt.com

The other day I was home I received a letter from a financial institution, saying – Calm down! your problems are over, get up to R $ 15,000 thousand with great interest and payment facilities – I almost believed. But the most certain thing that can happen in our life, is to make money working and pay expense accounts. If the person is controlled it will be a success, if not, everything that dreams is close but will bring problems in the budget and a lot of headache. No need to get desperate, you can get out of the financial grip by asking for a personal loan, that’s a loan that fits in your pocket.

I have the impression that you do not have money to pay day-to-day expenses, it seems that we are always in need of money, especially those who have limited income and do not make adequate financial control. The worst, it is this frivolous (futilities, fickle, without notion, without judgment) that is attacking the people, each one in this land wants to be better than the other in the demonstration of status, the other day I found a friend who bought a bag in 10 x of R $ 365.00 to hang on the shoulder, I have a friend who to talk on the phone and stay pressed on the screen of the cell phone, paid 12x of R $ 163.00 plus a little plane with the operator, legal.

What is the loan?

What is the loan?

The “loan for all”, the money comes out now, and you only pay later, if you have the name cleaned or consigned on the sheet.
Let’s make one thing clear! The loan, is a credit solution that serves to remedy emergency situations, period. Legally speaking, it is the contract or transaction made between a debtor and a lender (bank, financial, credit union etc.) that lends a certain amount in money with the addition of interest. Once the commitment has been reached, the debtor will have a deadline for payment, beginning and the deadline that can be chosen by him, until the end of the contract, the debtor reimburses the amount granted by the creditor plus an interest rate agreed beforehand.

Loan for all

Loan for all

The loan is for everyone, but not everyone can pick up, to get a loan the applicant has to go through or has already undergone a series of reviews by financial and banking institutions. In Brazil, we can say that there are three basic ways to get money with banks, how different lines of credit are and for different types of borrowers, interest rates, payment terms, conditions and advantages change a lot. If you are in need of a loan to cure more expensive debts or pay bills due or to expire, the most interesting thing is to check with your manager what is the best solution for you, not the bank.

Here are the types of loans commonly offered by banks and financial institutions in the country:

Pre-Approved Loan

Pre-Approved Loan

This form of credit is exclusive for bank account holders or clients who receive their salary, counter-check or INSS benefit, as is the case of retirees or pensioners, who have a pre-approved limit, the option is available in the account to be used at any time. The loan is automatic and can be done online, at the bank’s ATM, at the bank branch and by telephone. The installments are adjusted according to the limit and are automatically charged to the applicant’s checking account.

Payroll loan

Payroll loan

The more searching since it was created, the payroll is a type of loan that has its installments discounted directly on the payroll. There are many advantages for those who can contract this operation, the applicant does not need to have an account at the bank, the rates are the best compared to other modalities, the installments can be directly discounted at the company or paying agency of the applicant, during the term of the contract. The discharge of the loan can be anticipated after the grace period.

CDC – Direct Consumer Credit

The CDC is a loan directed more exclusively to the acquisition of goods and services like (electronics, appliances, construction materials and also technical assistance and maintenance). The CDC is a loan, but can be recognized with financing; the most awarded CDC are banks and retail stores. In this type of operation, the payment is made through the financing with credit card or financing in the card. There are several variants in the concession of this type of credit, one of them is the vehicle of the applicant given as collateral.

Taking advantage of the theme, check out the “Video of the Good for everything of the Bank of Brazil”